Down payment assistance in Delaware
Delaware's primary statewide down payment assistance program, run by Delaware State Housing Authority (DSHA). Numbers and eligibility reflect the program's published 2025 guidelines.
Preferred Plus
Second mortgage- Maximum assistance
- Up to 5% of loan amount as a 0% interest second lien
- Income limit
- Up to $138,000 (varies by county)
- Home price limit
- Up to $533,500 in New Castle County; lower elsewhere
- First-time buyer
- Not required
- Eligible loan types
- FHA, VA, USDA, Conventional
- •Second lien is 0% interest, due when you sell, refinance, or pay off the first.
- •Pairs with the DSHA Welcome Home first-mortgage.
How Delaware DPA fits into your purchase
Down payment assistance reduces the cash you need at the closing table. Delaware's Preferred Plus pairs with the standard FHA, VA, USDA, or conventional first mortgage from a participating lender; the DPA flows through the same closing.
Two things to budget for: most state DPA requires a homebuyer-education course (typically online, 6-8 hours, ~$75) and you usually have to use a lender on the agency's approved list. The agency keeps the list public on its website.
Common questions
Delaware's primary statewide DPA is Preferred Plus from Delaware State Housing Authority (DSHA). Up to 5% of loan amount as a 0% interest second lien. Many Delaware cities and counties also run additional DPA layered on top.
No. The Preferred Plus is open to both first-time and repeat buyers, subject to income and home-price limits.
Yes. Preferred Plus works with these loan types: FHA, VA, USDA, Conventional. The DPA is layered behind your first mortgage as a separate lien (or grant), and both close together.
Yes. A second-mortgage DPA has a monthly payment, and that payment is included in your debt-to-income ratio when the lender qualifies you.
Deferred and second-mortgage DPAs are generally repaid in full when you sell, refinance, or pay off the first mortgage.